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TMI Blog2022 (6) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... see should cooperate with the AO for furnishing all the details for determining peak calculation of the above OBC Bank transactions. Thus, the appeal filed by the assessee is allowed to the extent indicated above. Appeal of the assessee is allowed for statistical purpose. - ITA No.2686/Ahd/2016 - - - Dated:- 3-6-2022 - Smt. Annapurna Gupta, Accountant Member And T.R. Senthil Kumar, Judicial Member For the Assessee : None For the Revenue : Shri V.K. Singh, Sr.DR ORDER PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the assessee against order dated 22.7.2016 passed by the Commissioner of Income-tax (Appeals)-5, Ahmedabad relating to the Asst.Year 2012-13. 2. There is a delay of 9 days in filing this appeal before this Tribunal. The assessee has filed an affidavit that he was suffering with acute back-pain and trauma during the period and advised rest by Orthopedic Surgeon and also produced a copy of the Doctor s certificate dated 5.10.2016 which has caused delay of 9 days in filing the appeal. The ld.DR appearing for the Revenue has no objection in condoning the delay. 3. We are satisfied with the reasons given by the assessee, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the relevant financial year. Thus, the assessee claimed unaccounted small trading transactions inclusive of capital and profit were duly invested in the stock and the same has duly offered for taxation in the relevant year. Thus, taxing the cash deposits in the OBC Bank will amount to double taxation which is contrary to the basic principle of taxation. 6. Without prejudice to the above submissions and to buy peace of mind, the assessee offered peak credit of the cash transaction Rs.6,05,000/- recorded in the OBC Bank account as his income for the present Asst.Year 2012-13. 7. The assessee vide another letter dated 12.3.2015 submitted as follows: Please refer to the above captioned subject and reference to our submission dated 05.03.2015 where we have offered the peak amount of Rs. 6,05,000/- as our income for the assessment year under consideration. Further, as discussed, during the course of our assessment, we have no objection for assessing our income for the year under consideration at Rs.8,74,440/- based on 8% of the total turnover ofRs.1,09,30,500/- of our trading business in place of the peak amount of cash deposited of Rs.6,05,000/-for the year under con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corroborative evidences regarding this business was furnished by the assessee. The assessee has failed to furnish supporting evidences of his unaccounted business such as purchase and sales bills, stock details, name of suppliers and customers etc. which indicate that the assessee has made retail trading business and has received cash out of such activities and the same were deposited out of such receipts in the bank. In the case of the assessee there was a survey on 9.1.2014 in which the assessee has disclosed unaccounted stock of Rs.51,21,318/-. The appellant has tried to make out the case that whatever quantum of investment/profit earned out of such unaccounted trading activities have been parked in the unaccounted stock and the said stock has been disclosed that the income of F.Y. 2013-14. However, the assessee has failed to establish the nexus between the disclosure made during survey operation and unaccounted stock with the cash deposits made in the saving bank account held with the Oriental Bank of Commerce. In fact the survey was conducted on a much later date therefore it cannot be said that the unaccounted stock found during the course of survey is out of the deposits ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no justification to hold that as there were no bills for sales and purchase, the adoption of only Gross profit was not to be accepted. 4. The Id CIT(A) also erred in law and on facts in not appreciating that the appellant had also adhered to the statement made during survey with regard to disclosure obtained by survey team with respect to excess or unaccounted stock and hence the statement made could not be rejected in part. It be so held and submissions made be directed to be accepted 5. Both the lower authorities erred in making and in confirming addition in the hands of the appellant with regard to the gross deposits of the various amounts in the impugned bank account. It be so held now and addition made be deleted. 6. The Id CIT(Appeals) ought to have allowed the appeal in toto and cancelled illegal and erroneous order passed by AO. 12. Before us none appeared on behalf of the assessee. Therefore, we proceed to adjudicate the matter based on the material available on record and after hearing the ld.DR. 13. We find that the assessee has filed a detailed written submission during the appellate proceedings. The ld.CIT(A) has incorporated these submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ejected the contentions of the assessee on the ground that entries in the bank account are not supported by corroborative evidence, the assessee has not submitted copies of bills raised for sales made and purchase invoice for co-relating to the bank entries. The AO further observed that names and address of the parties for purchase and sales are not furnished, and therefore, genuineness of the transactions cannot be verified. The AO further held that the assessee has not maintained any account for the unaccounted business of Rs.1.09 crores whereas books of accounts are maintained for wholesale business of Rs.101.09 crores. The assessee further claimed that the undisputed fact as it emerged from the bank account itself is that, there were cash deposits and withdrawals either through bearer cheques or cross bearer cheques. Thus, in nutshell the rotation of the funds throughout the year was an undisputed fact available on the record and such rotation was nowhere disputed by the ld.AO also. The observation of the AO are just on the basis of nonavailability of purchase or sales bills and these bills were not available as the transactions were unrecorded and by virtue of the same, the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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